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Syllabus C: Business functions, regulation and technologySyllabus CBlockchainTechnology Integration

ACCA · Question 03 · Syllabus C: Business functions, regulation and technology

[Section A] A multinational pharmaceutical company is implementing blockchain technology to track the provenance of active ingredients across its global supply chain. Which of the following represents the PRIMARY control advantage of using blockchain in this specific context?

Answer options:

A.

It completely eliminates the need for physical quality control inspections at border crossings.

B.

It provides an immutable, decentralized ledger that prevents retroactive alteration of ingredient origin records.

C.

It automatically encrypts all internal employee communications regarding supply chain logistics.

D.

It centralizes all data into a single, proprietary server controlled exclusively by the pharmaceutical company.

How to approach this question

Focus on the fundamental characteristics of blockchain technology: decentralization and immutability.

Full Answer

B.It provides an immutable, decentralized ledger that prevents retroactive alteration of ingredient origin records.✓ Correct
Blockchain's primary strength in supply chain management is its immutability. Once data (like the origin of a pharmaceutical ingredient) is entered and verified by the network, it cannot be secretly altered. This provides a highly reliable audit trail.

Common mistakes

Assuming blockchain solves physical world problems (like physical quality control) rather than data integrity problems.
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